The World Economy

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PostPosted: Fri Oct 24, 2008 5:32 am
Something smells fishy to me... i think Wall St is about to crash big time.

Dow, S&P and NASDEQ Futures are all down passed there limits and the one safe option in times of uncertaintity GOLD is also down!!!

Something tells me everyone is pulling there money out and the Recession starts 24th October 2008.
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PostPosted: Fri Oct 24, 2008 5:53 am
Its all just so volatile, one day its back on track, then next its crashing.

The one thing these markets cannot handle is uncertainty and volatility..............so it doesnt look good.

Makes you realise how pathetic and fragile this world "theyve" built for us really is, when all it takes its a threat/worry for it all to come crashing down..........none of it is real money, its all just the idea of money. :roll:
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PostPosted: Fri Oct 24, 2008 3:37 pm
money has nothing backing it what so ever so when people begin to lose faith in money there are big problems.
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PostPosted: Fri Oct 24, 2008 3:47 pm
I'm so glad I have no money to lose...
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PostPosted: Fri Oct 24, 2008 4:18 pm
Captain_Jack wrote:I'm so glad I have no money to lose...


haha that sums me up pretty much nicely too on this issue
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PostPosted: Fri Oct 24, 2008 4:27 pm
Mr. Crackerz wrote:
Captain_Jack wrote:I'm so glad I have no money to lose...


haha that sums me up pretty much nicely too on this issue


I wish that were so. :cry:

Over here, we are almost in a full/official recession. Growth was announed yesterday and it has dropped by 0.5% which is alot, and the pound is down to 1.59 against the dollar..............which is very bad.

The ONLY good thing about all this, is that over here they have and will have to further lower interests rates (our National Bank Of England rate is what all others are judged by, usually a quarter of a percent above what that National rate is)

The good thing for me, is that when I renewed my mortgage last year, thinking that something like this might happen, I went onto a deal that is called a "tracker" which basically means that it would track the Bank of England rate, and follow it up or down.............ergo, my calculated risk is paying off, as now when everyone elses mortgage rates are being increased, mine is going down!!! (the clear sign this is great, is that you cannot get ANY tracker deals anymore, because they know that all the smart people who elected for this will be saving alot of money vs a very high percetage of the country that cant afford thier mortgages anymore and could be repossesed).............man I love being clued up about this stuff. :wink:
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PostPosted: Sat Oct 25, 2008 2:03 am
bigstrads wrote:The good thing for me, is that when I renewed my mortgage last year, thinking that something like this might happen, I went onto a deal that is called a "tracker" which basically means that it would track the Bank of England rate, and follow it up or down.............ergo, my calculated risk is paying off, as now when everyone elses mortgage rates are being increased, mine is going down!!! (the clear sign this is great, is that you cannot get ANY tracker deals anymore, because they know that all the smart people who elected for this will be saving alot of money vs a very high percetage of the country that cant afford thier mortgages anymore and could be repossesed).............man I love being clued up about this stuff. :wink:


That sh*t does not exists over here. Everybody (well, almost) has their mortgages going up and down (mostly increasing) according to the Euribor.

Not me, tho. I've got it at a fixed rate, so I just don't care about any other rates. :wink:
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PostPosted: Sat Oct 25, 2008 2:46 am
TMC wrote:
bigstrads wrote:The good thing for me, is that when I renewed my mortgage last year, thinking that something like this might happen, I went onto a deal that is called a "tracker" which basically means that it would track the Bank of England rate, and follow it up or down.............ergo, my calculated risk is paying off, as now when everyone elses mortgage rates are being increased, mine is going down!!! (the clear sign this is great, is that you cannot get ANY tracker deals anymore, because they know that all the smart people who elected for this will be saving alot of money vs a very high percetage of the country that cant afford thier mortgages anymore and could be repossesed).............man I love being clued up about this stuff. :wink:


That sh*t does not exists over here. Everybody (well, almost) has their mortgages going up and down (mostly increasing) according to the Euribor.

Not me, tho. I've got it at a fixed rate, so I just don't care about any other rates. :wink:


Really? no such deal that would track with the national rate?...............interesting.

What are you fixed at man? and how long is it for? (I used to be a mortgage advisor aswell, hence my knowledge of the stuff :wink:)
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PostPosted: Sat Oct 25, 2008 2:49 am
bigstrads wrote:
TMC wrote:
bigstrads wrote:The good thing for me, is that when I renewed my mortgage last year, thinking that something like this might happen, I went onto a deal that is called a "tracker" which basically means that it would track the Bank of England rate, and follow it up or down.............ergo, my calculated risk is paying off, as now when everyone elses mortgage rates are being increased, mine is going down!!! (the clear sign this is great, is that you cannot get ANY tracker deals anymore, because they know that all the smart people who elected for this will be saving alot of money vs a very high percetage of the country that cant afford thier mortgages anymore and could be repossesed).............man I love being clued up about this stuff. :wink:


That sh*t does not exists over here. Everybody (well, almost) has their mortgages going up and down (mostly increasing) according to the Euribor.

Not me, tho. I've got it at a fixed rate, so I just don't care about any other rates. :wink:


Really? no such deal that would track with the national rate?...............interesting.

What are you fixed at man? and how long is it for? (I used to be a mortgage advisor aswell, hence my knowledge of the stuff :wink:)



I've had some experience in the share market. Therefore I am a BROKER. I like to break it in :mrgreen:
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PostPosted: Sat Oct 25, 2008 3:17 am
bigstrads wrote:Really? no such deal that would track with the national rate?...............interesting.


Nah, the national bank is almost non-existant when it comes to mortgages. Everything goes through Euribor.

The latest trend, tho, is people setting their mortgages according to the Yen value. A bit risky, but seems to be working really well for those that decided to do so. For now, at least. It's a bit weird, because it works like those trackers, so it's kinda surprising that it's allowed in Yen but not in Euros. :scratch:

bigstrads wrote:What are you fixed at man? and how long is it for? (I used to be a mortgage advisor aswell, hence my knowledge of the stuff :wink:)



It's at 5,60%, for 20 years (only 10 left). It's a good deal, considering no bank in this country allows a fixed rate for less than 7,50% (actually, most are around 8%, hence why most people do not sign mortgages at a fixed rate).

I just got this one because the Department of Justice has a deal in place with that bank for its employees, and I'm quite happy I did. People with mortgages based on Euribor value have seen their mortgage increase around 200 € per month with this crisis... while mine stayed the same.
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PostPosted: Sat Oct 25, 2008 3:35 am
TMC wrote:
bigstrads wrote:Really? no such deal that would track with the national rate?...............interesting.


Nah, the national bank is almost non-existant when it comes to mortgages. Everything goes through Euribor.

The latest trend, tho, is people setting their mortgages according to the Yen value. A bit risky, but seems to be working really well for those that decided to do so. For now, at least. It's a bit weird, because it works like those trackers, so it's kinda surprising that it's allowed in Yen but not in Euros. :scratch:


Man, that is strange as hell.............no tracker against the Euro but you can against the Yen??? why Yen? I suppose that is one of the stablest currencies right now so that kind of makes sense but still a bloody weird way of doing it.

TMC wrote:
bigstrads wrote:What are you fixed at man? and how long is it for? (I used to be a mortgage advisor aswell, hence my knowledge of the stuff :wink:)


It's at 5,60%, for 20 years (only 10 left). It's a good deal, considering no bank in this country allows a fixed rate for less than 7,50% (actually, most are around 8%, hence why most people do not sign mortgages at a fixed rate).

I just got this one because the Department of Justice has a deal in place with that bank for its employees, and I'm quite happy I did. People with mortgages based on Euribor value have seen their mortgage increase around 200 € per month with this crisis... while mine stayed the same.


Dude, when I read that first line, I was like "NOOOOO!!!" :mrgreen:

Normally, I would think that a fixed deal for that long a term is a VERY bad idea, given how much it can flucuate either way but actually, the rate itself is pretty good in any market sitaution, especially in this current one................and as you say, atleast you know exactly what you are paying for a long time, and wont be affected by times such as these, and even when things recover or get back to normal, you probably wouldnt get a better rate than that, so nice one (pays to work for the man huh!? :mrgreen:)
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PostPosted: Sat Oct 25, 2008 3:50 am
bigstrads wrote:
TMC wrote:
bigstrads wrote:What are you fixed at man? and how long is it for? (I used to be a mortgage advisor aswell, hence my knowledge of the stuff :wink:)


It's at 5,60%, for 20 years (only 10 left). It's a good deal, considering no bank in this country allows a fixed rate for less than 7,50% (actually, most are around 8%, hence why most people do not sign mortgages at a fixed rate).

I just got this one because the Department of Justice has a deal in place with that bank for its employees, and I'm quite happy I did. People with mortgages based on Euribor value have seen their mortgage increase around 200 € per month with this crisis... while mine stayed the same.


Dude, when I read that first line, I was like "NOOOOO!!!" :mrgreen:

Normally, I would think that a fixed deal for that long a term is a VERY bad idea, given how much it can flucuate either way but actually, the rate itself is pretty good in any market sitaution, especially in this current one................and as you say, atleast you know exactly what you are paying for a long time, and wont be affected by times such as these, and even when things recover or get back to normal, you probably wouldnt get a better rate than that, so nice one (pays to work for the man huh!? :mrgreen:)



Unless that man is after your arse :mrgreen:

Apologies, that just popped in my head and had to say it. After all, you two have had quite the MANLY conversations lately :mrgreen:
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PostPosted: Sat Oct 25, 2008 4:04 am
bigstrads wrote:Dude, when I read that first line, I was like "NOOOOO!!!" :mrgreen:

Normally, I would think that a fixed deal for that long a term is a VERY bad idea, given how much it can flucuate either way but actually, the rate itself is pretty good in any market sitaution, especially in this current one................and as you say, atleast you know exactly what you are paying for a long time, and wont be affected by times such as these, and even when things recover or get back to normal, you probably wouldnt get a better rate than that, so nice one


Yeah, I know what it looks like, but keep in mind that mortgages based on Euribor value are not only that amount. It's the Euribor + something else (usually around Euribor + 0,30% if it's for 20 years, could be even more, but never less than + 0,25%). That almost puts it into a 5% total, and in times of crisis like right now, it goes up well above 6%.

Of course I'd never sign a deal for a fixed rate at 8%, but the one I got is a risk I'm willing to take for the sake of not having to care about the market. I know what I'm paying and I'm one of the few that know it will stay the same.

About the long term deals... I don't know about England, but lately I've seen mortgage deals that run up to 40 years. Keep in mind that Spain is a country that has gone crazy about house building in the last decade. We've built more houses in the last ten years than France, Italy and Germany... together. Total madness.

Mine is quite affordable, considering the "environment". :wink:


bigstrads wrote:(pays to work for the man huh!?)


Best part is I don't have to care about job security, health care systems (all included, and for free, in the Departement's insurance, except some cosmetic surgery) and sh*t like that. Worst part is that my job still forces me to deal with hookers, dealers, pedophiles and all kind of scum you can imagine... Guess you have to take the good AND the bad. :wink:
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PostPosted: Sat Oct 25, 2008 4:05 am
migya wrote:
bigstrads wrote:(pays to work for the man huh[/size]!? :mrgreen:)



Unless that man is after your arse :mrgreen:

Apologies, that just popped in my head and had to say it. After all, you two have had quite the MANLY conversations lately :mrgreen:


Oh, man... you too??? :?

:mrgreen:
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PostPosted: Sat Oct 25, 2008 4:46 am
TMC wrote:Yeah, I know what it looks like, but keep in mind that mortgages based on Euribor value are not only that amount. It's the Euribor + something else (usually around Euribor + 0,30% if it's for 20 years, could be even more, but never less than + 0,25%). That almost puts it into a 5% total, and in times of crisis like right now, it goes up well above 6%.

Of course I'd never sign a deal for a fixed rate at 8%, but the one I got is a risk I'm willing to take for the sake of not having to care about the market. I know what I'm paying and I'm one of the few that know it will stay the same.

About the long term deals... I don't know about England, but lately I've seen mortgage deals that run up to 40 years. Keep in mind that Spain is a country that has gone crazy about house building in the last decade. We've built more houses in the last ten years than France, Italy and Germany... together. Total madness.

Mine is quite affordable, considering the "environment". :wink:


Yeah, youve definately done well..............Im sure the markets are very very different but even so, that is still a great rate. I was going to ask whether there is a percentage ontop of the Euribor, which is how it is here too.

Mine is 4.89 at the moment, which originally was a fixed one year rate of 5.39, then I would move onto the tracker after that one year...........the funny thing is that my tracker deal is to be 0.39 ontop of whatever the Bank of England is, and when I came off the fixed year the BOE was 5.00 so I stayed the same............and now its been reduced to 4.50 so Im saving money!!! :)

And in times of recession, the BOE always HAS to come down so I will continue to pay less and less whilst everyone elses goes up and fixed rates are around 6.5%+............man, so glad I decided to do that deal last year. :shock:

TMC wrote:Best part is I don't have to care about job security, health care systems (all included, and for free, in the Departement's insurance, except some cosmetic surgery) and sh*t like that. Worst part is that my job still forces me to deal with hookers, dealers, pedophiles and all kind of scum you can imagine... Guess you have to take the good AND the bad. :wink:


Dude, Id do a job like yours (if I was able to of course) if it got me all that security and preferential rates and what not..............you get to do good in ensuring these scum bags get brought to justice, and you get rewarded for it..........as you should.

Your soul is satisfied because you doing a worth while thing (as apposed to working for some financial institution) and contributing to society, and your physical life is satisfied because you live well and have those securities and benefits..............very envious of both of those my friend. :wink:
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